August 6, 2025: In a significant ruling with wide-ranging implications for Maharashtra’s real estate sector, the Supreme Court on Monday disposed of W.P.(C) 166/2025 – Vanashakti vs Union of India – reaffirming the authority of the State Environment Impact Assessment Authority (SEIAA) and State Expert Appraisal Committee (SEAC) as the competent bodies for granting environmental clearances to real estate projects.
The judgement, which stems from a legal petition filed by industry body CREDAI-MCHI, brings clarity to a regulatory grey area that had stalled more than 493 housing projects across the Mumbai Metropolitan Region (MMR) and Pune. The delays had affected over 70,000 housing units, primarily in the affordable and mid-income categories.
The court struck down key clauses from previous environment ministry notifications issued in 2014 and 2016 — particularly Clause 14(a) and Appendix 16 — which had proposed the formation of Environmental Cells under local planning authorities. The bench found the provisions problematic, citing concerns over jurisdictional overlap and lack of clarity. The court also rejected differential treatment under environmental law for industrial sheds and educational buildings, instead calling for a consistent regulatory framework across asset classes.
Domnic Romell, President, CREDAI-MCHI, said, “This judgment is a direct result of CREDAI-MCHI’s proactive legal intervention to protect the interests of our members and the thousands of homebuyers impacted by stalled projects. We initiated this petition to bring clarity to an increasingly complex and ambiguous environmental clearance process, and we are grateful that the Hon’ble Supreme Court has upheld the role of SEIAA and SEAC as competent authorities. This is a monumental relief for Maharashtra’s real estate sector. We thank our legal team, senior counsels, and the leadership across CREDAI who stood firmly behind this initiative. This victory reflects the strength of united industry advocacy and our resolve to drive meaningful reform.”
The final order is awaited and expected to be published shortly. Developers and planning authorities across Maharashtra are likely to resume work on halted projects once the order is implemented, offering renewed momentum to the state’s housing sector.
